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The NCS: A Bridge to Global Logistics Knowledge Revised March 2003

The NATO Codification System (NCS):A Bridge to Global Logistics Knowledge

By

Brenda Eddy and Steven ArnettDefense Logistics Information Service

TABLE of CONTENTS

1.GENERAL...................................................................................................................................................... 2

2.ORIGINS AND GOVERNANCE..................................................................................................................... 2

3.COMMON RULES AND DATA STANDARDS...............................................................................................2

3.1.Item Identification.................................................................................................................................... 3

3.2.The NATO Stock Number....................................................................................................................... 3

3.3.Categories of Data.................................................................................................................................. 43.4.Relationship between the NATO NCBs ..................................................................................................4

3.5.NATO Stock Number Assignment and "User Registration" ....................................................................4

4.INTERNATIONAL LOGISTICS DATA EXCHANGE.......................................................................................5

4.1.Maintenance of Logistics Data Records..................................................................................................5

4.2.Cataloging Tools Maintenance................................................................................................................6

4.3.Benefits of the NCS ................................................................................................................................ 6

4.4.Operational Advantages: ........................................................................................................................ 7

4.5.Economic advantages:............................................................................................................................ 7

5.NCS SPONSORSHIP.................................................................................................................................... 7

5.1.Partners for Peace (PfP)......................................................................................................................... 95.2.NATO AC/135s BASELOG Program......................................................................................................9

5.3.The Pacific Area Cataloging System (PACS) .......................................................................................10

5.4.Other Country Interest .......................................................................................................................... 10

5.5.NATO Codification Products................................................................................................................. 10

5.6.The NCS - A Cornerstone of Defense Logistics Cooperation ...............................................................11

6.INFO............................................................................................................................................................ 11

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1. GENERAL

The NATO Codification System (NCS) has been in place since the mid-1950s. It provides standards for theuse of a common stock identification system throughout the NATO alliance. We tend to take this common

language of NATO logistics for granted in field operations. The NCS is quickly appreciated, however, whenthe operational commander finds himself in a joint environment with partner countries each using somethingdifferent.

In his address to the 8th NATO Symposium on Codification, in May 1997, General de Brigade Jean-MarcRenucci, Chef de la Division Organization et Logistique, Etat-Major des Armees France, spoke of hisexperience during the peacekeeping operations in the former Yugoslavia. He explained how multinationalcoalitions have been increasingly used for peacekeeping since the fall of the Berlin Wall. In the formerYugoslavia, for example, more than 30 nations were involved under the framework of the United Nations.Gen. Renucci described the patchwork of UN battalions, Non-Governmental Organizations (NGOs), andother charitable agencies. The experience of the French Forces was that the lack of a common technicallanguage led to an intolerable waste of resources. With the transfer of authority and responsibility from theUN to NATO, the forces were able to set up a very efficient system of cross-support, specifically through the

use of the NCS.

The NCS is an "invisible partner in the day-to-day business of logistics. Beginning in the United States, andthen expanding to NATO, multinational use of the NCS today is growing at a faster rate than ever before.This article provides an overview of this little publicized aspect of international logistics support.

A very significant event occurred in Moscow, during January 2003, when NATO and Russian officials signedthe sponsorship agreement which welcomed Russia as a sponsored user of the NCS. Beginning in 2004,Russia expects that all Russian weapons exports will include NATO classification for component parts. TheRussian desire to align with the NCS is based on the fact that up to 40% of the arsenals of NATO membercountries in Central Europe consist of Russian arms and spare parts.

2. ORIGINS AND GOVERNANCE

The NCS provides NATO countries with a uniform and common system for the identification, classification,and stock numbering of items of supply. It is based on the U.S. Federal Catalog System (FCS), which isoperated by the Defense Logistics Information Service (DLIS) located in Battle Creek, Michigan, a fieldactivity of the Defense Logistics Agency (DLA). The foundation for this system within NATO rests in twoNATO Standardization Agreements (STANAGs). STANAG 3150, Uniform System of Supply Classification,adopts the U.S. system of classifying supplies as the standard within the Alliance. STANAG 3151, UniformSystem of Item Identification, adopts other basic standards for identification of supply items and sets thegoverning structure in place for the NCS.

The NCS is governed by Allied Committee 135 (AC/135) - NATO Group of National Directors onCodification. This committee is composed of representatives from each NATO member nation and aparticipant from the NATO Maintenance and Supply Agency (NAMSA). The AC/135 functions under theauthority of the Conference of National Armament Directors (CNAD) at NATO and normally meets twice peryear. The committee is committed to increasing the effectiveness and efficiency of defense logisticsinteroperability between participating nations and providing the bridge to facilitate global logistics operations.

3. COMMON RULES AND DATA STANDARDS

The system provides NATO allies with a common identification language for use within national activities andbetween member countries. Non-NATO countries that are sponsored members of the NCS also benefitfrom the system. The foundation of the NCS is the principle that the responsibility for the codification of anitem rests with the country that manufactures it and controls its design. This is true even if the item is notused within the military forces of that country. Common rules and data standards (including a Data Element

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Dictionary) allow for improved communication between members. Using coded data allows for automatictranslation into national languages through decode tables.

3.1. Item Identification

Item identification is the most important element of the codification system because it establishes a uniqueidentification for every item of supply. The identification consists of the minimum data required to establishclearly the essential characteristics of the item, i.e., those characteristics that give it a unique character anddifferentiate it from all others.

The NCS identification process is based on the Item of Supply concept. The term item of supply refers toan item required for acquisition in order to satisfy a logistics need. It can consist of one or many items ofproduction (i.e., a product of a specific manufacturer) having equivalent fundamental characteristics.

The system employs rules for naming each item of supply using standard naming conventions to ensureuniformity among users. The NCS controls these naming conventions using a dictionary of Approved ItemNames. Each approved name is given a five digit numeric code. This code-based system provides for easy

translation and communication between nations in varying languages. After an item has a name, a suitablesupply classification is determined.

The vast number of items of supply in the NCS has made it necessary to establish manageable commodityclassifications of items, by family grouping. The NATO Supply Classification system provides for discretecommodity groups and classes. Each group consists of items of the same physical or performancecharacteristics or the same application. Within each group, there are more specific classes that further definethe specific commodity-type of items included. For example, one large commodity group of items is HandTools, identified as Group 51. Within the large "group of hand tools, there are sub-classes that differentiatethe types of hand tools (i.e., non-powered, powered, tool boxes and kits, and sets of hand tools).

A unique number identifies each of the sub-classes, for example:

5110 - Non-powered, edged hand tools

5120 - Non-powered, non-edged hand tools

5130 - Power driven hand tools

5140 - Tool and hardware boxes

5180 - Sets, kits and outfits of hand tools

To achieve the NCS objectives of (1) increasing the efficiency and effectiveness of logistics operations; (2)facilitating data handling; and (3) minimizing costs to user nations, it is essential that each item of supply beassigned a unique name, classification, identification and a NATO Stock Number (NSN).

3.2. The NATO Stock Number

Countries that participate in the NCS follow common standards and techniques to assign NSNs to items ofsupply in their defense inventory. The National Codification Bureau (NCB) within each country centrallyassigns their national NSNs. The assignment of an NSN fixes the identity of each distinctive item of supply.All NSNs are uniform in composition, length, and structure. Each is represented by a 13- digit number, whichcan be divided into 3 unique parts:

the first four digits are the NATO Supply Classification (NSC) code, which relates the item to thegroup and class of similar items

the next two digits indicate the assigning NCB code (each country has its own two-digit NCB codethe United States uses 00 and 01)

the final seven digits are assigned sequentially and have no inherent significance. However, this

number relates to one and only one item of supply within the codifying country.

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Within NATO, the NCS currently contains 16 million active NSNs (about 7 million U.S. and about 9 millionassigned by other NATO countries). The items represented range from hand grenades to guided missiles,from propeller blades to space vehicles, and from soap dishes to washing machines.

3.3. Categories of Data

The data collected on supply items is stored in national databases for immediate Categories of Item Dataretrieval and use. Users of the NSNs may access details of items. Common descriptive guides, available toall participating countries, allow for storage and exchange of coded physical and performance characteristicsfor each NSN. Using a suitable decoding tool, translation of these coded descriptions is possible.Management data may be stored for NSNs and supports all logistics disciplines, including such data assource of supply, unit of issue, packaging information, handling criteria, hazardous materials coding, and

disposal information.

3.4. Relationship between the NATO NCBs

Each NATO country and all non-NATO NCS sponsored countries have established National CodificationBureaus (NCBs) or central operating organizations, to implement the NCS. The NCBs play an essential rolein all logistics operations. The information, services and products provided by the NCBs support every facetof national and international logistics operations. Each NCB is the sole responsible authority within itscountry regarding codification data exchange and services. DLIS serves as the NCB for the United States.DLIS is responsible for liaison services to the NATO countries and to other countries that use the NCS.

3.5. NATO Stock Number Assignment and "User Registration"

The U.S. NCB catalogs supply items used by our NATO partners and other foreign allies. It processed over36,000 allied requests for U.S. NSN assignment during fiscal year 2002. These items represent supplymaterials manufactured in the U.S. but intended for use within NATO or by other allied forces supportedunder a Foreign Military Sales (FMS) case. For every NSN assigned, the responsible NCB must (a) verifythat the item is procurable; (b) research each item to obtain supporting technical data; (c) name the item; (d)classify it; (e) describe each item; and (f) assign the NSN. The almost 25,000 new NSNs assigned by theU.S. NCB during the last year represent about one quarter of the total annual NSN assignments made by theUnited States.

On behalf of the U.S. military services, the U.S. NCB also processed over 6,500 requests to other NATOcountry NCBs for assignment of foreign (non-U.S.) NSNs. This total represents items of foreign origin(manufacture) incorporated into our U.S. operational force structure.

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Around 43% of all the 6.6 million active U.S. National Stock Numbers have at least one allied userregistered as an interested user. By a process known as user registration, allies may establish a record oftheir national interest in a U.S. NSN. Recorded users may elect to receive notification of changes made tothe NSNs that they have an interest in. There are currently about 50 separate foreign countries recorded asusers on various NSNs in the U.S. catalog system.

4. INTERNATIONAL LOGISTICS DATA EXCHANGE

4.1. Maintenance of Logistics Data Records

Internationally agreed methods and procedures have been established to facilitate the regular exchange ofcodification data and services among member countries. The NCB within each country is responsible formaintenance of the Total Item Record (TIR) for each NSN. Dissemination of logistics data to other NATOcountries is the responsibility of each NCB.

The TIR for each NSN contains segments of data, each composed of separate types of logistics data. A

segment is a group of related data elements, functionally categorized. The major data segments are:Segment A - Identification data (including item name)

Segment B - Major Organizational Entity (MOE) Rule data (indicates NSN users)

Segment C - Reference number data (including manufacturer codes)

Segment E - Standardization data

Segment G - Freight data

Segment H - Management data

Segment K - Cancellation data

Segment M - Clear text characteristic data

Segment V - Coded characteristic data

Segment W - Packaging data

Output is normally generated as either informational or file maintenance updates. TIR file maintenance is anydata addition, change, or deletion related to an existing NSN or the establishment of a new NSN. Eachparticipating country specifies the type(s) of file maintenance output for which they want notification. Not allNCBs store all segments. Tailored output notifications send only the specific transaction results and specificsegments of data required by each allied customer. The data they receive reflects the data they want sent tothem, based on their specific requirements. Countries can change the type of output notifications they wantat any time.

Because participating NATO nations and NCS sponsored non-NATO countries routinely exchange file data,

there are standard procedures for doing this by the exchange of magnetic tapes or cartridges as well asthrough telecommunications. Currently, virtually all data exchange among NCS users occurs viatelecommunications.

The NATO Mailbox System (MBS) provides for the telecommunication of codification data through anexchange station at NAMSA headquarters in Luxembourg. The system provides for:

central hardware/software platform with various predefined connectivity options for the subscribers

the handling of various protocol conversions

NAMSA performs transmission control for all transactions included in the MBS and stores data in particular

electronic mailboxes for retrieval by the destination activities (countries). Subscribers of the MBS can beNCBs, NAMSA, and sponsored non-NATO countries. U.S. cataloging information can also be received on a

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bilateral basis through the International Logistics Communications System (ILCS), which is administered bythe Defense Automatic Addressing System Center (DAASC), Wright-Patterson Air Force Base in Ohio. TheILCS is provided to countries on a subscription basis financed by FMS cases. It is used to create andtransmit requisitions, receive and process status documents, and transmit and receive narrative messages.The ILCS is also used for transmitting codification data. The Arms Export Control Act requires countries to

pay for the transmission of requisition data; however, the Act permits the transmission of codification dataand cataloging services to NATO and NATO member governments without charge if NATO and the membercountries provide such data and services in accordance with an agreement on a reciprocal basis, withoutcharge to the U.S. Government. Around 30 million records of U.S. cataloging information are automaticallyoutput to our allies each year.

4.2. Cataloging Tools Maintenance

Cataloging tools are the supporting reference publication and data files which support operation of theNCS. The following list offers a few examples of the tools that are essential to the success of the NCS.

Cataloging Handbook of the Federal Supply Classification system (Groups and Classes) (H2) and

NATO Supply Groups and Classes (ACodP-2)This cataloging handbook presents the classification structure of the NATO/Federal SupplyClassification system (N/FSC), showing numeric groups and classes listed in the numeric order ofthe four-digit FSC code-numbering system.

Cataloging Handbook of Item Names (H6)/NATO Item Name Directory (ACodP-3)

This handbook contains an alphabetic index of item names, including a reference to the N/FSCfollowing each Approved Item Name (AIN). Definitions of each name are also included.

These two cataloging handbooks include both English and French text, the official languages of NATO. Manyparticipating nations maintain versions of these handbooks in their own national languages. For example,Saudi Arabia has produced Arabic versions of both handbooks.

FIIG Federal Item Identification Guide

A FIIG is a document used to identify an item by describing its attributes or characteristics (in codedformat) to differentiate it from other items of supply and to establish the supplementary datanecessary for logistics management.

NCAGE NATO Commercial and Government Entity Code

It is necessary to record each manufacturers names against codified items. A 5-character NCAGE isassigned to each manufacturer to meet this requirement. The code reflects the source and locationof technical documentation for an item. Each NCB assigns the codes for its national manufacturersand these are recognized and exchanged between NCS members.

The United States is the proponent for the official naming and classification standards. It maintains thesecodification system support files at each NCB by scheduled electronic update.

4.3. Benefits of the NCS

The NCS is an integral part of supply operations throughout the world. It furnishes accurate information to allparticipating countries on the characteristics of millions of items. It simplifies the solution of supply datamanagement problems by providing quick responses from a single, up-to-date source. The NCS offers manysignificant advantages to NATO and non-NATO countries, as well as to private sector participants outsidethe defense community.

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4.4. Operational Advantages:

Enhanced opportunities for standardization, by revealing the different varieties, types, and sizes ofitems in supply systems, allowing parts from a number of weapons systems to be used in common

A national and NATO-wide knowledge of all available military assets and resources allows forrationalization of inventory management by sharing resources on spare parts and maintenanceactivities, and a minimum distribution of essential spare parts during the deployment of forces in atheater of operation

An accurate description of the items permits users to readily find equipment which meetsrequirements for replenishment without delay

The use of a common language understood by everyone simplifies the technical dialogue betweenparticipating countries and users

The use of computer technology allows the recording, processing, and transmittal of itemidentification data and related management support data in easily accessible databases

Descriptions of items enable design engineers to accurately search for and select components or

equipment meeting technical or functional characteristics more efficiently than with any commercialcatalog

4.5. Economic advantages:

The NCS database allows visibility of parts already stocked in the supply system and helps preventthe entry of duplicate items. This practice supports the standardization of managed items andeliminates unnecessary costs for identification, storage, and other related supply functions. Nearly50 percent of the components used in the design of new equipment are already codified

Effective use of assets by enabling supply support interchange between linked organizations andbetween countries

Reduction in inventories, storage space, record keeping, and personnel through elimination ofduplicated items

Reduced equipment downtime by facilitating cross support between services and cross supportbetween countries

Reduced procurement expenses by consolidating purchases, allowing less frequent purchases ingreater amounts

5. NCS SPONSORSHIP

During its existence, many non-NATO countries, including many PfP countries, have adopted the NCS. Moreand more countries are seeking and receiving sponsorship within the NCS. Sponsored countries sign anagreement to exchange codification data and to abide by the rules and procedures of the system. Amongother things, the rules require countries to provide equivalent safeguards to protect sensitive and proprietarydata.

A non-NATO country seeking sponsorship makes a written request to a NATO country or the Secretariat ofAC/135. All NATO member nations then determine their national position on the sponsorship. Each memberprovides written concurrence or non-concurrence on the request. Within the United States, DLIS collaborateson the national position, through HQ DLA, to the Deputy Under Secretary of Defense (International andCommercial Programs) for official comment. The AC/135 Group of Directors grants the country NCSsponsorship upon agreement by all NATO member countries, and upon signing of the official sponsorshipagreement by both the representative of the applicant country and the Chairman of the AC/135. The AC/135signs sponsorship agreements on behalf of NATO, and a responsible representative from the defenseministry of the sponsored country signs on its behalf. Information about NCS sponsorship is kept up-to-dateat Web sitehttp://www.dlis.dla.mil/nato/default.asp

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NATO Countries AC/135 Sponsored Countries Countries using the NCS

Belgium Albania Israel

Bulgaria Argentina Papua New Guinea

Canada Australia Solomon Islands

Czech Republic Austria

Denmark Brazil

Estonia Chile

France CroatiaGermany Egypt

Greece Fiji

Hungary Finland

Iceland Indonesia

Italy Korea, Rep. of

Latvia Kuwait

Lithuania Macedonia, Fmr Yugoslav Rep. of

Luxembourg Malaysia

Netherlands New ZealandNorway Philippines

Poland Russia

Portugal Saudi Arabia

Romania Singapore

Slovakia South Africa

Slovenia Thailand

Spain Tonga

Turkey Ukraine*

United Kingdom

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NATO Countries AC/135 Sponsored Countries Countries using the NCS

United States

( * NCS sponsorship request in preparation - Situation as of June 2004 )

The benefits of sponsorship include the following:

Use of a codification system that is fully designed and proven through many years of experience andworldwide use

Improved interoperability with the NATO countries and other countries around the world

Visibility of nationally manufactured items to all users of the NCS around the world

Telecommunications data exchange with the NATO countries and other countries through the NATOMBS system of data exchange

Ability to influence further development of the NCS

Although the recent expansion of the NCS has reached each of the inhabited continents of the world,the primary focus has been in two areas:

The Partnership for Peace (PfP) nations in Europe

The Pacific Rim nations that are part of the Pacific Area Cataloging System (PACS) Forum

5.1. Partners for Peace (PfP)

The PfP countries include former members of the Warsaw Pact, former Soviet republics, and neutral

countries. Participation in the NCS is an important first step toward interoperability with the NATO Alliance.About 30 countries are members of PfP. A number of these countries are already NCS sponsored (Austria,Croatia, Finland, Macedonia and Russia). PfP countries are now participating in the on-going managementmeetings of AC/l35. In 1995 in Hamburg, Germany, and in 1998 in Bulgaria and the Ukraine, NATO AC/135held workshops for PfP countries to familiarize them with the full range of topics related to the NCS.Members of AC/135 have also made many bilateral contacts with PfP countries. Representatives of the U.S.NCB at DLIS have visited Lithuania, Bulgaria, Macedonia, Romania, Slovakia and Slovenia to provide NCSorientation and consultation services under "Mil-to-Mil" programs. DLIS has also hosted delegations fromseveral PfP countries.

5.2. NATO AC/135s BASELOG Program

As a result of increasing contacts with non-NATO Nations and their defense industries, AC/135 has

concluded that PfP nations require substantial support in their efforts to adopt and implement the NCS. Tomeet this requirement, AC/135 has developed an initiative known as project BASELOG. This allows AC/135to put in place a framework for the provision of generic codification services for non-NATO, and particularly,PfP nations, as well as for NATO nations, if so desired. The scope of services covered under the umbrella ofBASELOG encompasses the provision of basic codification services, consultation services, training in NATOcodification, various codification data products, sponsorship support services, and other services as required.

BASELOG is an AC/135 sponsored project, financed on a reimbursement basis, utilizing a clearing houseapproach. A BASELOG coordinator has been established at the NATO Maintenance and Supply Agency toregister non-NATO requirements, make them known to NATO countries, and provide AC/135 with reports.Appropriate offers of support are accordingly submitted to fulfill the registered requirements, with NATOnations providing concrete support to assist PfP Nations in adopting the NCS. The U.S. NCB is an activeparticipant and contributor to the BASELOG program.

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AC/135 commenced the BASELOG program with Lithuania (the first nation to respond to the BASELOGsurvey) as the pilot nation. During the pilot phase, the procedures were scrutinized, and the soundness of thewhole project was validated. AC/135 also agreed that in order to enhance and promote co-operationbetween NATO and PfP nations, no subscription charges would be levied on participating nations in the firstyear of the project.

5.3. The Pacific Area Cataloging System (PACS)

The PACS is an initiative of the Pacific Area Senior Officers Logistics Seminar (PASOLS), sponsored by theCommander in Chief, U.S. Pacific Command. Its purpose is to establish common cataloging rules within thePacific region based on the NCS. Twenty-one countries participated in a series of working group meetingsbeginning in 1995. This led to the establishment of the "PACS Forum" in 1997. The United States andCanada have taken a leading role in forming the group and have provided the link between PACS andNATO. Twelve countries have formally signed the PACS charter, and other nations, such as Japan andChina, participate as observers. The following countries are signatories:

Australia

Canada Indonesia

Malaysia

New Zealand

Papua New Guinea

Philippines

Republic of Fiji

Singapore

South Korea

Thailand

Tonga

United States

The PACS Forum encourages members to seek formal sponsorship in the NCS by applying to the AC/135.Many PACS members have already done so. Indonesia is currently awaiting approval as a NATO Tier 1sponsored country.

5.4. Other Country Interest

In addition to the PfP and PACS initiatives, the NCS is increasingly used in South America, with Brazil andArgentina taking the lead. Furthermore, South Africa is using the NCS, and the United Nations is consideringuse of the NCS and integrating it with its UN Common Coding System.

5.5. NATO Codification Products

NATO offers CD-ROM/DVD products containing data from all the NATO countries.

Information about the NATO Ammunition Data Base (NADB) is available by consulting Web sitehttp://www.dlis.dla.mil/nato/natodata.asp#ammo

Information about the NATO Master Catalogue of References for Logistics (NMCRL) can be foundby contacting Web site http://www.nato.int/structur/AC/135/nmcrl/nmcrl_e/index.htm.

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The NMCRL contains NSN data from all the NATO countries. The April 2002 version of the NMCRL includesmany updates to the product, including the addition of non-NATO data (NSNs and addresses), crossreferences to UNCCS codes and more.

5.6. The NCS - A Cornerstone of Defense Logistics CooperationThe NCS has become the worldwide standard for civilian and military cataloging and material management,as shown by its widespread adoption by countries all over the world. This growth was symbolized by largeand widespread attendance at the 8th NATO Symposium on Codification in 1997. The symposium washosted by DLA in San Diego, California, and was attended by over 400 representatives from 41 countriesaround the world. NATO Allied Committee 135 more recently hosted the 9th International Symposium onCodification in Luxembourg during September 2001.

Effective logistics requires obtaining the appropriate equipment, in the right place, at the right time. While allarmed forces must maintain their equipment in a perpetual state of operational readiness to ensure thesovereignty of their respective country, each must also realize savings by avoiding duplication andsimplifying administration. The NATO countries have accomplished this need through their invisible partner,

a highly effective common system in the business of logisticsthe NATO Codification System.

The NATO Codification System

A Bridge to Global Logistics Knowledge

6. INFO

For more information on the NCS, visit

the AC/135 Web site at :http://www.nato.int/codification

the DLIS Home Page at :http://www.dlis.dla.mil/nato/default.asp

the PACS Home Page at :http://www.defence.gov.au/dmo/_jlc/pacs/homepage.htm

Points of contact for questions regarding this article are:

Chris Yoder or Steven Arnett

Defense Logistics Information ServiceDLIS-KI74 Washington Avenue NBattle Creek, MI 49017-3084

Chris Yoder : Steven Arnett :

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PHONE: +1 (269) 961-4286E-MAIL:[email protected]

PHONE: +1 (269) 961-4328E-MAIL: [email protected]

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